Foreign Subsidiary Translation

Greene Company, a U.S. corporation fully owns Monet, a subsidiary located in France. Monet reports its results in Euros. Monets sales occur primarily within the EU market and it secures its financing via French credit markets.

Provided below is Monets 2020 pre-closing trial balance.

Account	Debit	Credit
Cash	207,700
Accounts receivable	309,900
Inventory	197,600
PPE, net	1,295,600
Current Liabilities		224,100
Long-term Liabilities		550,700
Common Stock		80,000
APIC		229,000
Retained Earnings		724,500
Dividends	22,500
Sales		1,000,000
Cost of goods sold	610,000
Operating expenses	135,000
Depreciation Exp.	30,000
Totals	2,808,300	2,808,300

The relevant exchange rates for the $US value of the Euro () are as follows:

Beginning of year rate	$1.40
End of year rate	$1.50
Avg. rate	$1.45
PPE purchase date rate	$1.42
LTD borrowing date rate	$1.46
Dividend rate	$1.48
Historical rate (Common Stock and APIC)	$1.15

Assume that the beginning of year retained earnings balance (in US$) is $741,930.

REQUIRED:

Prepare an income statement, and balance sheet for Monet in US dollars in good form, which Greene can use to begin the consolidation process.